Insight
Payne: Leaders who cannot improve their own tools lack customer empathy
“And my theory there is if you can't be empathetic about yourself and knowing you and how you use that thing, you say this is your most frequently used AI product and you can't make a feature for that. Like, you know, come on. Right? You're, there's no chance y…”
Assertion Not checkable as stated
Payne: DoorDash never subsidized expansion by selling dollars for 90 cents
“For a while, there was a narrative like, oh, we're giving away dollars for 90 cents. Absolutely not. You couldn't do that because you would lose money very, very rapidly. Too fast for a company that didn't have a lot of money.”
Insight
Payne: Leaders must ring-fence 10% of resources to protect new initiatives
“As an executive that starts these new S curves, one of the things I've learned is that it's my job to protect those S curves, because what's gonna happen is even in a small organization like DoorDash and really in a large organization, Everybody tries to kill …”
Assertion Not publicly verifiable
Payne: DoorDash grocery, retail, alcohol, and Drive are each multi-billion dollar businesses
“So if you look at DoorDash, you'll say, okay, it's restaurants, it's grocery, it's alcohol, it's retail, right? It's DoorDash Drive, our platform business. All of these now are multi-billion dollar businesses that are, and so you have to have that.”
Insight
Payne: Hiring is noisy and organizations fail by not moving on quickly
“It's very noisy. It's a batting average thing. I think people spend too much time thinking that they can engineer that process to be perfect. I much rather, yes, we're gonna interview, yes, we're gonna look for skills, but then we're gonna bring them in and we…”
Opinion
Payne: Undergrads show far more innovation than MBA students
“The innovation level for the undergrads was like off the hook. Like it was like, they were so cool. The ideas were so cool. And, but the business school students had the polished, like, yeah, here's the plan. Here's the, But the ideas had been like somehow wat…”
Insight
Payne: Bottom-up goal setting suppresses corporate ambition
“One of the things that I do is I tend to be very initially tops down in goal setting. A lot of companies are in teams are bottoms up in goal setting. And I found that that is not a great way to have ambition.”
Insight
Payne: Operational inspection requires generalizing granular details with data
“I think the thing that people get wrong though, about details is that you need to be able to go down to the detail. But you must be able to then generalize that and then look at the data to find out whether that detail is interesting or important or not.”
Disclosure
Payne: Focusing deeply on two to three problem areas quarterly scales executive leverage
“It's a strategy I've used in my career to scale myself. And so every quarter I might have two or three of those special areas that I'm going deep on with the hope that I can kind of scale myself. And to your question, I'm hoping I'm, while I'm doing that and h…”
Insight
Payne: Skipping ground-level local testing before national scaling guarantees failure
“If you just try to run to the end, you won't have the lessons that are necessary to be successful because the problem is not homogenous.”
Assertion Not checkable as stated
Payne: Microsoft under Bill Gates required forceful defense of ideas
“Microsoft's a very challenging environment, very competitive environment and when, you know, Bill challenges you respond with force. You know, you gotta be You know, behind your idea and everything.”
Insight
Payne: Test operations locally before expanding, but change pricing writ large
“If I'm tackling a problem, if I can break it down into sub parts where I can work on a problem, DoorDash was great for this because you, instead of trying to launch everything across the United States all at once, you're like, no, I'm going to start this proje…”
Disclosure
Payne: Watching Tony Xu at DoorDash convinced me not to be CEO
“I decided I don't want to be a CEO. Like I was a CEO of my little company, but the truth is I watched Tony and I was like, holy cow. Like, I don't really like this job that he has. Right. I like my job. Right. And so one of the things for me is like, I've been…”
Insight
Payne: Hypergrowth operating processes are guaranteed to fail within six months
“I say the thing you're doing now is guaranteed to not work six months from now, right? Guaranteed.”
Prediction Not checkable as stated
Payne: AI will make organizations flatter and expand managerial capacity
“And so I think that, that that's gonna have huge implications for how organizations are run and your ability to manage teams of humans and AIs is gonna go through the roof. I do think organizations will likely be flatter in the future.”
Assertion Supported
Payne: DoorDash was running out of money and couldn't raise in 2017
“There were periods where DoorDash was running out of money and couldn't raise money in 17”
Insight
Payne: Executive teams are dysfunctional if members prioritize their functional department
“The number one way you can tell is ask them what team they're on. And if they don't say that team, if they say I'm on the eng team or I'm on the marketing team on the product team, then you've got a dysfunctional team, right?”
Assertion Not checkable as stated
Payne: DoorDash targeted gross margin profit at 6 months, contribution profit at 12
“So you have to hit six months of volume to get the gross margin positive, and then you have to get to 12 months at a certain volume to get what we call contribution margin profit. To flow through the bottom line.”
Disclosure
Payne: I founded DoorDash's platform business as its first new S-curve
“Like one of the first things I did at DoorDash, cause I had a lot of experience with this is I, even though DoorDash was very young, I founded the first new S curve at DoorDash, which was The platform business.”
Assertion Supported
Payne: My six-month stint as Tinder CEO was a total disaster
“But then there was the Tinder experience where, you know, it was a disaster. I got fired after six months and I, you know, it just didn't, I didn't fit there.”
Assertion Not checkable as stated
Payne: Amazon launched its entire video business in six months in 1998
“This is in, you know, March or April of 2000, sorry, in 1998, right? And Jeff wants us to launch in October, right? And so, roll forward. October of 1998, we launch Amazon. I'm in every mahogany boardroom for every movie studio. So I went from, like, can't get…”
Assertion Not checkable as stated
Payne: 92% of eBay sales went through search in 2009
“So when I joined eBay, they said, Christopher, go fix search. That was my thing. This was 2009. 92% of the sales went through search at that time.”
Assertion Supported
Payne: DoorDash's nationwide expansion succeeded through remote city launches
“And DoorDash cracked that. That was our, we figured out how to expand economically remotely. And that, that allowed us to expand across the country. Everybody calls it the suburb strategy, but it really was an expansion strategy.”
Assertion Partly supported
Payne: Tony Xu and I pitched The Cheesecake Factory in person
“Tony and I, who was showing up at the Cheesecake Factory selling the Cheesecake Factory? It was Tony and me, right? We were the little engine that could, right? We, and we were like, we're not in Rideshare. We're in food delivery. We're gonna, we're in, so the…”